Is finding the back of the net the hardest job in football? But cable television models or satellite TV, like, those suffered. He is also a member of the Board of Trustees of Georgetown University, is a trustee of the Tate Foundation, serves on the board of Year Up, an organization focused on youth employment, and serves on the Board of Trustees of Trinity School in New York City. And, you know, I grew up at the foothills of the Sierra Nevada Mountains, and I love to go there. RITHOLTZ: Im halfway through it, really loving it. BARATTA: and nice calling card. We had our second real estate fund, which was I think about $1.2 billion or $1.3 billion. And he was, you know, in that moment, completely dismissive. Its not just like the next deal, the next promotion, the name in the paper or whatever. RITHOLTZ: Lets talk about books. Hours Left50% Off The Information Pro Ends TonightGet Pro. Inflation is significant. Follow me on Twitter @ritholtz. Of course, I mean, France, Germany, Italy, Spain, you know, the whole Nordic region, Sweden, theyre not . So I wanted to get a job at a private equity firm. You go to D.C. You go to New York. You werent taken seriously. I had no language skills. And so, were trying to find the businesses that are going to be enabled and benefited by AI, and avoid the things that are going to be dislocated. So I actually think, at the large end of the private equity market, were undercapitalized. And David and I moved over to do the private equity stuff. And, you know, cost structures are a little less efficient there may be than in the U.S. now. Private credit deals tend to be sold for plus. BARATTA: Exactly. RITHOLTZ: So Joe Montana, Jerry Rice didnt suck you in. BARATTA: Well, what brings me energy and joy in my job is investing capital and working with companies. And I know the size, it was 32, 33, 34, $35 billion. So our strategy was, and sort of David had conceptualized, like, were going to be the neutral Americans who can work with the local European firms to help them get deals done. The modern day striker has to be many things to make it to the top. Matthew Delly on LinkedIn: Areas of thematic investing focus from The goal: to help bring brand . Both in terms of the aggregate revenue of our company, size of our portfolio, were probably now something like 150 total investments, many hundreds of billions of revenue, hundreds of thousands of employees if you add up all of the companies in which were invested. The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. How are you looking at the investment environment today? You see these things before they start to show up in the economic data. How do you use all of this data thats generated by all of your portfolio companies to navigate the world at large? RITHOLTZ: And you had mentioned private credit before, that seems to have been a giant growth area, especially when rates were at zero, when people arent seeing a whole lot of returns from fixed income. BARATTA: Yeah. Blackstone Hires Droga5 Chief Strategy Officer Jonny Bauer To - Forbes [1] Early life Born in Sacramento, California, Baratta graduated from Jesuit High School in the Sacramento area in 1989, then Georgetown University, from which he graduated magna cum laude in 1993. Clever. Maybe theyre not run that efficiently. I think that also theres a bunch of businesses that are manufacturing things that must exist in the physical world, you know, to cool or heat the environment, food, the distribution of essential medical products, whole energy transition. Were down to our last two questions, what sort of advice would you give to a recent college grad who was interested in a career in private equity? You have your way. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. When did Blackstone start to look at Asia? You can take margins up. And so, instead of investing in those, we decided to back Kevin Mayer and Tom Staggs, two ex-Disney guys, really well-regarded business guys in the entertainment industry, to build an independent content creation business, which weve done both in childrens content with Moonbug, and in live action entertainment with Hello Sunshine, which was the business that Reese Witherspoon started. BARATTA: I just got done with Daisy Jones & The Six . I would be remiss if I did not thank the fine team who help put this conversation together each week. BARATTA: I think early on, it was important until we established ourselves, and then we did less of that. RITHOLTZ: And everybody started drinking and we looked at each other, can we have a drink that morning? BARATTA: In November of 2001, when I moved over , BARATTA: The industry wasnt called private equity; it was called venture capital and it wasnt . BARATTA: And then, of course and now, look, theyre fun to watch. We had actually two investments in Germany in telecom infrastructure that in that moment, were doing that great. So, you know, the answer is we cant really get deals much bigger than, you know, $10 billion to $15 billion done on our own. Even when you read that announcement from that was 2012 . Get subscriber-only insights and news delivered by Barry daily. I do really think they nailed it. US buyout giant Blackstone Group has announced the appointment of Joe Baratta, the former head of its European private equity team, as its new head of global private equity. BARATTA: I mean, with all respect to the Joneses who run that team, you know . You can stream and download our full conversation, including any podcast extras, iTunes, Spotify, Stitcher, Google, Bloomberg, and Omny. Business models are changing. BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have an extra special guest, Joe Baratta is the Global Head of Private Equity at PE giant Blackstone, where he has worked since 1998. BARATTA: You know, the book I most recently finished, by Arthur Brooks, a book on happiness. Blackstone's Buyout Head Is Eyeing Public Companies For information on our privacy practices see our Privacy Policy. Joe Baratta - Private Equity - Blackstone | LinkedIn RITHOLTZ: So lets talk about some of those different types of funds. You know, to your point, like its hard to turn on a dime and say, sell the whole portfolio. BARATTA: So Steve said, we got to have real presence. You can find those at YouTube, iTunes, Spotify, wherever you find your favorite podcasts. And it also happens to be a production of one of our portfolio companies, Hello Sunshine. From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life. And to me, that was a more comfortable form of investing and where I wanted to bet my career. BARATTA: No, no. We also discuss how Private Equity has developed over the past three decades from a small $50 billion alternative to a massive multi-trillion dollar investment sector. RITHOLTZ: Really quite interesting. And I was like, geez, okay, well . RITHOLTZ: So eventually you leave Morgan Stanley, you ended up at Tinicum Incorporated and McCown De Leeuw & Company. Fintechs, beat down by the tech meltdown last year, are struggling to make good on their pitch to consumers. Lets start out with just a little background on your career. You know, bigger technology companies, software businesses that have proven theyve got really durable sticky revenue models. Global Head of Private Equity, Joe Baratta, shared insights on how Blackstone is thinking long-term in this business cycle and how investors can prepare - by focusing intently on sector &. As of 1 April 2023 he still owns at least 1,145,448 units of Blackstone Inc stock. Joseph Baratta | Year Up BARATTA: watch media, changed the way we shop, changed the way we found information. And the market hasnt loved owning manufacturing industrial-type businesses. It seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. That sounds quite fascinating. Theres plenty of great smaller banks whose business strategy is to serve smaller and medium-sized businesses. Probably somewhere around 2004 or 05, we started doing things by ourselves. Were always on the 10:00 a.m. game and it was Americas team. Before joining Blackstone, Mr. Baratta was with Tinicum Incorporated and McCown De Leeuw & Company. Barry Ritholtz. RITHOLTZ: Let me ask you about India because it feels like, at least, in the public markets, India is always on like a year or two away from being the next big thing and it just hasnt seemed to happen. RITHOLTZ: Im not being sarcastic. And I think if you add it all up, we have about $40 billion of funds that were currently investing in their investment period. Happy to be here. In London, in September, I had him come to talk about like what it means to be from where you should be deriving your happiness. Blackstone was right on their heels back then. Joe Baratta, Blackstone Group LP's top private equity dealmaker, can't be too cautious right now. RITHOLTZ: You start out in California. BARATTA: Yeah. Sean Russo is my researcher. I dont know what they call themselves back then. No, no, thats I mean, the firm is called Blackstone, period. So Im watching the Cowboys like every Sunday. We hired an Italian for the firm, Andrea Valeri. They introduced me to the head of a significant private equity firm in Europe. In addition, he makes $0 as Global Head of Private Equity and Director of the Company at Blackstone Inc. Joseph has made over 11 trades of the Blackstone Inc stock since 2020, according to the Form 4 filled with the SEC. Exclusive: Blackstone grooms six executives for Schwarzman's job We have associated funds in Asia and an energy transition, and a long-dated vehicle that allows us to hold things for 15-plus years. JosephBarattais the Global Head of Private Equity and a member of Blackstones Board of Directors. If you enjoy this conversation, well, be sure and check out any of the previous 500 or so weve done over the past eight years. The whole dressing custom, yeah. But I cant explain it. BARATTA: Yeah, thats part of it. He was the senior guy at that time. Deceptive. And enjoy the journey. RITHOLTZ: By the way, there are a lot of different names for Blackstone. BARATTA: Were not seeing evidence of it in the portfolio. and Merlin Entertainments Group. RITHOLTZ: Really quite interesting. Theres real inflation. You get paid for the incremental risk that youre taking in a more leveraged capital structure. And I think thats, right now, a little bit plus, the financing markets are less liquid, and theres less quantum available. But, you know, when I moved, you didnt have the single currency in circulation until January of 02. So what is $10 billion dollars . A Blackstone View on the Next Wave of Buyouts - LinkedIn Mr. How do you keep all that straight? Youve been listening to Masters in Business on Bloomberg Radio. Mr. Baratta served as the Senior Managing Director and Head of European Private Equity at The Blackstone Group. So given the change in size of private equity over the past 25 years, is there a sweet spot? To view recent press releases,click here. RITHOLTZ: You see that on the private market? Long-term fund strategies, only an idea a few years ago, have come of age as investors see early evidence of performance, Joe Baratta, Blackstone's global head of private equity, said in an interview with Buyouts. BARATTA: Yeah. It took a year for all those local currencies, literally paper and coin currencies, to come out of circulation and have euro bills. So, yeah, theres a few companies where Im closely involved, and I sit on the board and I help their management teams plot strategy and deal with important strategic issues. RITHOLTZ: So youre anticipating one of the questions Im going to ask you, which I might as well bring it up now. BARATTA: And, you know, philanthropy in the U.K. is at a different scale than in the U.S. Abraham Shafi has stepped down as CEO of messaging app IRL following allegations that the company used bots to inflate the users it reported publicly and to investors, according to a person with direct knowledge. BARATTA: Exactly. High-yield junk bonds still 'frothy': Blackstone - Yahoo As for the right way, the correct way, and the only way, it does not exist. BARATTA: I go to California all the time. You know, we bought Hilton in June of 2007. Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives. I have my way. So a big part of what we do is trying to figure out where we dont want to invest, and whats going to be dislocated by ubiquitous broadband back in 2005, 06, 07, and now, AI with a rate of sophistication of that technology. Its really quite fascinating. Why am I talking to him? So, really, in private equity, our first adventure outside of Western Europe was in India and China, and that was somewhere around 2005. It wasnt very long after the handover of Hong Kong to China, like a lot of things were changing in both the U.K. and Europe. The Fed was saying, no, its transitory or whatever adjective they used. Off-duty: Blackstone's Joe Baratta on gravel biking, Cloud Cuckoo Land Blackstone Joe Baratta Finance Manager Boca Raton, FL INFINITI of Coconut Creek, +10 more Joe Baratta I/O Psychologist, Trustee, Vice Chair Lake Tahaoe School Board, CEO TBIG Investments. Get subscriber-only insights and news delivered by Barry daily. Joseph Baratta Age : 51 Public asset : 567,113,101 USD Country of residence : Unknown Linked companies : Blackstone Inc. - Merlin Entertainments plc Biography of Joseph Baratta Joseph Patrick Baratta is Director & Head-Global Private Equity at Blackstone, Inc. and on the board of 13 other companies. Joseph Baratta is the Global Head of Private Equity and a member of Blackstone's Board of Directors. RITHOLTZ: I never would have guessed that. But for listeners, you know, you dont have the same capital costs. So lets talk a little bit about the state of PE investing today. Learn More Get subscriber-only insights and news delivered by Barry every two weeks. And you have to enjoy that process and enjoy like the time it takes. But were not seeing it. BARATTA: You had stuff going on in Latin America. RITHOLTZ: But youre not dealing with startups; youre dealing with . Do you have the same phenomenon in the private market? So you do some really interesting work at Blackstone, including serving on a lot of portfolio companies boards. BARATTA: But they were private equity. He is very familiar with everything from M&A to credit, to real estate, on and on, and has had experiences both in the U.S. and overseas, really a global perspective on what took place in private equity in the past and what the future looks like. And we were like, look, wed be great partners as youre looking at assets. The war in Ukraine, surprisingly, hasnt had a negative impact, or at least not as much as I expected in the public markets. You know, that did not happen when we were kids. Three things to know about Blackstone's $8bn long-hold strategy Transcript: Joe Barratta of Blackstone April 18, 2023 8:00am by Barry Ritholtz The transcript from this week's, MiB: Joe Barratta, Blackstone's Global Head of Private Equity, is below. There werent that many people. It changed the way we communicated with each other. RITHOLTZ: in The Atlantic. And then, like I said, theyre very accessible. The first deal we looked at was in France. What attracted you to them in 1998 when they were still kind of a modest, small firm? Its not just power generation from those sources, but its companies that are involved in consulting, in utility services, in companies that make components that are helping electrify the economy, in electric vehicles or in HVAC systems. Privacy Policy Were hiring summer interns now who are 19 and 20 years old. Blackstone invests money on behalf of institutions and individuals, including more than 30 million U.S. pensioners. Yeah. Joe Baratta to Join Blackstones Board of Directors Im not saying were clairvoyant and we handled everything perfectly. Joe Baratta, welcome to Bloomberg. Privacy Policy RITHOLTZ: Really interesting. RITHOLTZ: you know, 20, 25 years ago. Baratta said his Blackstone unit had invested $1 billion to $1.5 billion in company buyouts the first half of 2015, a rate that is "a lot slower" than in previous years. And then we started seeing significant signs in inflation, particularly in our real estate business, with rents going up significantly, wages going up across our private equity portfolio, beginning to see pricing power for many of our companies that they hadnt had in a long time. And so, we began to hire local people who were young in their careers. RITHOLTZ: Really interesting. And, you know, Ive lived in great places. About 10 or 15 years later, we actually did work together, and he acknowledged that moment and said, God, I just thought you guys were just such jokes. I was supposed to go over you know, in November, I ended up doing that. In the U.K., we own the Savoy Group of Hotels, which is the Connaught and Claridges and Savoy. Like I said, theres a few fundamental enabling technologies that happen, ubiquitous broadband, internet to your house to your mobile device, which really enabled a change in retail and media models and communication models, and now this. Obviously, rates are higher, but prices seem to have come down a bit. Blackstone is one of the worlds leading investment firms. But we can, things that are mature, things where weve realized value, sometimes were taking companies public and we can sell stock. Joseph Baratta Net Worth, Biography, and Insider Trading RITHOLTZ: Theyre nice sized property, nice set group of . Sounds like you guys arent aggressively in the, were in a recession or about to have a recession six months. Off-duty: Blackstone's Joe Baratta on gravel biking, Cloud Cuckoo Land and the Dallas Cowboys Baratta's shares his New Year's resolution, books he's reading and high and low career moments, as well as his fantasy management role in the NFL. And so, thats what we were able to do to a large degree, is to become more conservative, to become more cautious on valuations, you know, as we started seeing evidence of inflation, and thinking that rates were probably going to go up at some point. RITHOLTZ: Similar to U.S. antitrust rules . It feels like were very early stages of transitioning to being able to pull up somewhere and spend 10 minutes charging the car to get you another 100 miles or so. BARATTA: I agree with you, I mean, 100 percent. What is . Sometimes we buy things from our competitors, particularly if we think we can make them a lot bigger through acquisition or other things. But its nothing like it is today. Inside Blackstone's Plans to Create an Entertainment Empire We do think, at some level, it does affect the cost structures. Meet the frontrunner to lead Blackstone in Europe So, were, were very much open for business in Europe, in the U.K. You know, the conflict has definitely been a drag to some degree in the economy, and introduces some uncertainty. Its one firm made unified. India is very attractive. RITHOLTZ: in prices. BARATTA: And I had very modest expectations like, geez, if I can last two or three years, at least I will have done it. Joe Baratta is preparing for a new world. That is part of the energy transition. In the last 16 years, insiders at Blackstone Inc have sold an estimated . BARATTA: Yeah, hes amazing. RITHOLTZ: You could just access everything online as well , BARATTA: Fewer of them. Switchboard:+1 (212) 583-5000. And what sort of input do you give to managements there? Weve had a big business there for a long time and we see really attractive assets. MiB: Joe Barratta, Blackstone's Global Head of Private Equity Blackstone Inc executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, Stocks and cryptocurrency portfolio tracker.